KuCoin’s Parent Company Agrees to $500K Civil Penalty to Resolve Charges

The mum or dad firm of KuCoin can pay a $500,000 civil penalty to settle a case by the US Commodity Futures Buying and selling Fee alleging it operated an unregistered offshore commodities alternate.

In an announcement on Monday, the CFTC said that the US District Courtroom for the Southern District of New York had entered a consent order towards KuCoin’s mum or dad firm, Peken International Restricted, which can see all the CFTC’s claims resolved.

Peken International Restricted agreed to the settlement with out admitting or denying the CFTC’s claims. It additionally prevented having to disgorge earnings gained in the course of the interval it was charged over — from July 2019 to round June 2023 — because the CFTC cited the corporate’s prepared cooperation with the investigation.

The commodities regulator stated that the $500,000 penalty imposed by the court docket components in that KuCoin had already pleaded responsible and agreed to pay a $300 million fine in January 2025, as a part of a parallel Division of Justice (DOJ) case charging the agency for working an unlicensed money transmitter enterprise.

Supply: CFTC

KuCoin restricted from providing entry to People

In March 2024, the CFTC released an announcement on its lawsuit towards KuCoin outlining that the company was in search of sturdy punishments, corresponding to everlasting buying and selling bans towards Peken International Restricted, in addition to Mek International Restricted, PhoenixFin PTE Ltd. and Flashdot Restricted — the three different corporations concerned within the operation of KuCoin.

The CFTC alleged that KuCoin operated “sham” know-your-customer procedures and didn’t take sufficient motion to stop US prospects from utilizing the platform, whereas additionally charging it with failing to register as a futures fee service provider or overseas board of commerce.

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Below the most recent settlement, Peken International is prohibited from permitting US residents to commerce on KuCoin except it registers with the CFTC as a overseas board of commerce.

Cointelegraph reached out to KuCoin for remark.

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